Solutions Management .............
     a new approach to the troubled company.

Chapter Five: Bring Closure to the Investment

Create and Promote an Exit Strategy
From the inception of an assignment, OEM Capital Corp. strives to develop a suitable and timely exit strategy for the investors. In some cases, we have been forced to use a Chapter 11 to arrange a speedy sale. However, whatever the circumstances, we steer the course of the engagement in a direction that will enable us to reach a satisfactory resolution for our client.

Refinance with a Specialty Lender
Frequently it is possible to refinance the credit with another lender which has specific experience in the collateral or the business. Certain lenders specialize in financing difficult credits and under-performing businesses, provided they can satisfy themselves that the liquidation of the assets can secure the loan. OEM has refinanced a number of companies that were troubled or considered under-performing by their former lenders. In one particular instance, the financing replaced a publicly quoted high yield bond issue.

Find and Secure Suitable Merger Partners
Since 1985, OEM Capital has sold or merged more than thirty businesses. The firm's network of buyers extends worldwide through correspondent relationships. In the case of troubled companies, the buyer is usually located in North America or has an established presence here.

Competitors and other synergistic buyers are frequent merger partners. In one particular assignment, the buyer was a large technology driven company wishing to enter a particular field. In this case, we worked closely with the client to develop the opportunity and consummate the sale.

Divest and bring closure to the Investment
The object of the assignment is frequently to divest the business and bring closure. OEM Capital Corp., with its investment banking background, has been particularly adept at achieving superlative results through the sale of parts or all of the troubled business.

While it may be necessary for an investor to sustain a loss, it is still preferable to a total loss. The same capital investment and time applied in another opportunity frequently yield a higher return to the client.